Prime Minister Narendra Modi always in a process to make the country corruption free and terror free. The recent announcement made by PM is to abolish the old currency of 500 and 1000 rupees. Along with that, Modi announced that the bank and ATM will remain closed for 9 November 2016. This recent news was announced on the evening of TuesdayI.e, 8 November 2016 and became effective from midnight of the same day.

Why is this announcement made?

People are curious to know about the decision and the reason behind this announcement. Though Modi has not cleared up all the reasons but based on this news, following assumptions can be made like:

To convert the black money into white money.

To stop all the sources of white money

To encourage people to pay their income taxes on regular basis

To make the India terror free as the black money is used for such thing

To encourage payment through cards

To demotivate the neighbour country to spread forged currency notes within India

To end the root cause of corruption

What do we with the old currency?

Nothing will be changed so drastically if the money is earned through the right way. People have to submit their save money at the bank which is the most reliable source. This announcement will be affecting the currency of 500 and 1000 rupees only, yet another currency will be ineffective. People may adapt any of the techniques:

Modi has given 50 days time to change the currency so people may change their old currency of 500 and 1000 till December 2016. Though one person can change Rs 4000 within 15 days and Rs 4000 for next 15 days through bank, post office while showing his I’d proof.

Cash money can be deposited to bank or saving account which is all safe. One may become liable for income tax yet, he or she will be safe from the legal point of view.

People became panic with such news. As they had to suffer from the lack of currency or had to worry about the hard money they earned. This news even affects the little piggy bank of kids made at home. In continuation with this news,

Bank will remain closed for one day I.e., 9 November 2016 to conduct their own work

Initial withdrawal limit will be Rs 2000 per day up to 18 Nov 2016 which can be extended later to Rs 4000.

The transaction can be made through cheques, card, net banking or mobile banking or through the currency of Rs 5, 10, 50, 100 etc.,

Cash withdrawal from a bank account, over the counter will be restricted to Rs 10,000/- subject to an overall limit of Rs 20000 in a week for the first fortnight, I.e., until the end of business hours on November 2016.

RBI announced issue of new currency of Rs 500 and Rs 2000

Reserve bank of India has announced to issue notes of Rs, 500 and Rs 2000 yet there is no news about the 1000 Rs note. Reserve bank of India also released some FAQ to facilitate the general public about their doubts and to make them the panic fee. The picture of new currency note is given below:

Unique features of new currency released through RBI

With the announcement of Modi, RBI subsequently announced to release the new notes of Rs. 2000 with the new features. These features are listed below:

On the obverse:

The notes will be carrying the image of mahatma Gandhi having right side face

Contains signature of Urjit R Patel, Governor, RBI

Denominational numeral 2000 will be in Devanagari

See-through register with denominational numeral 2000

The base colour will be magenta

The printing year will be 2016

Latent image with denominational numeral 2000

Micro letters ‘RBI’ and ‘2000’ on the left side of the banknote

Windowed security thread with inscriptions ‘भारत’, RBI and 2000 on banknotes with colour shift. Colour of the thread changes from green to blue when the note is tilted

Modi Announced to Ban Old Currency of Rs. 500 and Rs. 1000 on an urgent basis. People are countless what to do with the save money they are having at their residential and work places. Here are some of the RBI FAQ or frequently asked questions being answered by RBI to facilitate the people with the liquid money.

Read the whole information carefully without investing and using your hard earned money.

1. Why is this scheme?

The incidence of fake Indian currency notes in higher denomination has increased. For ordinary persons, the fake notes look similar to genuine notes, even though no security feature has been copied. The fake notes are used for anti-national and illegal activities. High denomination notes have been misused by terrorists and for hoarding black money. India remains a cash-based economy hence the circulation of Fake Indian Currency Notes continues to be a menace. In order to contain the rising incidence of fake notes and black money, the scheme to withdraw has been introduced.

2. What is this scheme?

The legal tender character of the notes in denominations of Rs. 500 and Rs. 1000 stands withdrawn. In consequence thereof withdrawn old high denomination (OHD) notes cannot be used for transacting business and/or store of value for future usage. The OHD notes can be exchanged for value at any of the 19 offices of the Reserve Bank of India or at any of the bank branches or at any Head Post Office or Sub-Post Office.

3. How much value will I get?

You will get value for the entire volume of notes tendered at the bank branches / RBI offices.

4. Can I get all in cash?

No. You will get up to ₹4000 per person in cash irrespective of the size of tender and anything over and above that will be receivable by way of credit to a bank account.

5. Why can I not get the entire amount of cash when I have surrendered everything in cash?

The Scheme of withdrawal of old high denomination(OHD) notes does not provide for it, given its objectives.

6. ₹4000 cash is insufficient for my need. What to do?

You can use balances in bank accounts to pay for other requirements by cheque or through electronic means of payments such as Internet banking, mobile wallets, IMPS, credit/debit cards etc.

7. What if I don’t have any bank account?

You can always open a bank account by approaching a bank branch with necessary documents required for fulfilling the KYC requirements.

8. What if, if I have only JDY account?

A JDY account holder can avail the exchange facility subject to the caps and other laid down limits in accord with norms and procedures.

9. Where can I go to exchange the notes?

The exchange facility is available at all Issue Offices of RBI and branches of commercial banks/RRBS/UCBs/State Co-op banks or at any Head Post Office or Sub-Post Office.

10. Need I go to my bank branch only?

For exchange up to 4000 in cash, you may go to any bank branch with valid identity proof.

For exchange over 4000, which will be accorded through credit to Bank account only, you may go to the branch where you have an account or to any other branch of the same bank.

In case you want to go to a branch of any other bank where you are not maintaining an account, you will have to furnish valid identity proof and bank account details required for electronic fund transfer to your account.

11. Can I go to any branch of my bank?

Yes, you can go to any branch of your bank.

12. Can I go to any branch of any other bank?

Yes, you can go to any branch of any other bank. In that case, you have to furnish valid identity proof for exchange in cash; both valid identity proof and bank account details will be required for electronic fund transfer in case the amount to be exchanged exceeds ₹4000.

13. I have no account but my relative / friend has an account, can I get my notes exchanged into that account?

Yes, you can do that if the account holder relative/friend etc gives you permission in writing. While exchanging, you should provide to the bank, evidence of permission given by the account holder and your valid identity proof.

14. Should I go to the bank personally or can I send the notes through my representative?

Personal visit to the branch is preferable. In case it is not possible for you to visit the branch you may send your representative with an express mandate i.e. a written authorisation. The representative should produce authority letter and his / her valid identity proof while tendering the notes.

15. Can I withdraw from ATM?

It may take a while for the banks to recalibrate their ATMs. Once the ATMs are functional, you can withdraw from ATMs up to a maximum of ₹2,000/- per card per day up to 18th November 2016. The limit will be raised to ₹4000/- per day per card from 19th November 2016 onwards.

16. Can I withdraw cash against cheque?

Yes, you can withdraw cash against withdrawal slip or cheque subject to the ceiling of ₹10,000/- in a day within an overall limit of ₹20,000/- in a week (including withdrawals from ATMs) for the first fortnight i.e. up to 24th November 2016.

18. Can I make use of electronic (NEFT/RTGS /IMPS/ Internet Banking / Mobile banking etc.) mode?

You can use NEFT/RTGS/IMPS/Internet Banking/Mobile Banking or any other electronic/ non-cash mode of payment.

19. How much time do I have to exchange the notes?

The scheme closes on 30th December 2016. The OHD banknotes can be exchanged at branches of commercial banks, Regional Rural Banks, Urban Cooperative banks, State Cooperative Banks and RBI till 30th December 2016.

For those who are unable to exchange their Old High Denomination Banknotes on or before December 30, 2016, an opportunity will be given to them to do so at specified offices of the RBI, along with necessary documentation as may be specified by the Reserve Bank of India.

20. I am right now not in India, what should I do?

If you have OHD banknotes in India, you may authorize in writing enabling another person in India to deposit the notes into your bank account. The person so authorised has to come to the bank branch with the OHD banknotes, the authority letter given by you and a valid identity proof (Valid Identity proof is any of the following: Aadhaar Card, Driving License, Voter ID Card, Pass Port, NREGA Card, PAN Card, Identity Card Issued by Government Department, Public Sector Unit to its Staff)

21. I am an NRI and hold NRO account, can the exchange value be deposited in my account?

Yes, you can deposit the OHD banknotes to your NRO account.

22. I am a foreign tourist, I have these notes. What should I do?

You can purchase foreign exchange equivalent to ₹5000 using these OHD notes at airport exchange counters within 72 hours after the notification, provided you present proof of purchasing the OHD notes.

23. I have emergency needs of cash (hospitalization, travel, life-saving medicines) then what I should do?

You can use the OHD notes for paying for your hospitalization charges at government hospitals, for purchasing bus tickets at government bus stands for travel by state government or state PSU buses, train tickets at railway stations, and air tickets at airports, within 72 hours after the notification.